Bit confused...need help regarding Tui AG rights issue

Tomc878

Hello all, first time poster but looking for advice as an inexperienced investor.   I have held some shares in Tui and I have read about a recent rights issue. My confusion comes from what this means for me as a shareholder. I hold through the shares via a stocks and shares ISA with Barclays under Tui AG ORD REG SHS NPV (DI) , but in the last couple of days a seperate investment has appeared showing TUI AG DI (EACH REPR 1 PRE-EMPT RT) (22/01/21) for a large amount of circa £5000. This is also showing as gains in my investment portfolio as if I have been gifted this amount.   I am not naive enough to think this has actually been gifted to me but after reading online (seems very difficult to find exact information on this) I believe I do need to take action here. My only option provided in my investment platform is to sell the shares. They seem to be at a discount price too. I am not sure what to do or what I can do.  If Tui are the ones I need to contact then how in gods name would I go about contacting them about my shares?? As you can see I have limited knowledge on the matter but I would appreciate any help or advice from anyone, especially from anyone who has experienced the same with Tui shares. Thank you 🙏 

Thrugelmir

Firstly, on a broader level how do Barclays normally interact with you regarding Corporate events. Post, email?  As you need to give instructions to them.

How many TUI shares do you own, excluding the Rights Issues ones ?  

Tomc878

Thrugelmir said:

Firstly, on a broader level how do Barclays normally interact with you regarding Corporate events. Post, email?  As you need to give instructions to them.

How many TUI shares do you own, excluding the Rights Issues ones ?  

Hi thanks for the reply! 

I received an email from them stating that action needs to be taken and to log in, which I did but there was no further prompt of any kind. I own 2140 shares excluding the rights issues ones...

Tomc878

Can anyone help? Would really appreciate it! 🙂

philng

The Rights Issue is to raise capital to reduce debt. You have the option of buying a further 25 shares for every 29 shares you own. So in your case 1844 add shares at a reduced price of 96p but you will need to act quick if you want to take up offer. My broker deadline is 21st January. If you don't take up offer your holding will in effect be diluted as there will be more shares in circulation. All things being equal the SP will fall once the Rights have been issued. Decision as to whether you take up offer will be based on your opinion of future of TUI going forward which has taken on a lot of debt in order to get through the last year.
I have taken up my Rights as hope for an uplift in holidays once Vaccine sorted but there are risks involved.

ali_bear

TUI are doing it again. This time you have the right to buy 8 new shares at a discount for every 3 you hold. 

Similar to the OP my S&S ISA platform has them listed already as a holding, before I decide what to do. The really confusing thing is they have the new shares listed at a price 85p which is a long way below the offer price of 401p. Not sure where this new valuation comes from, and if it means I'll definitely take a ~80% loss if I'm foolish enough to exercise the rights? 

wmb194

ali_bear said:

TUI are doing it again. This time you have the right to buy 8 new shares at a discount for every 3 you hold. 

Similar to the OP my S&S ISA platform has them listed already as a holding, before I decide what to do. The really confusing thing is they have the new shares listed at a price 85p which is a long way below the offer price of 401p. Not sure where this new valuation comes from, and if it means I'll definitely take a ~80% loss if I'm foolish enough to exercise the rights? 

DYOR obviously but there was a brief article about it in the FT. It seemed to think it was a good deal as the largest shareholder - a sanctioned Russian - is excluded from being able to participate.

The 85p shares you're seeing are probably the rights you own. They can usually be traded in the run-up to the issue and they should have their own code. I think they're these ones, LSE:TUIB. You might not be able to do it online but you should be able to sell them if you want to.

https://www.londonstockexchange.com/stock/TUIB/tui-ag/company-page

https://www.ft.com/content/199b1c10-d2df-4a8f-b8db-124bf56df254

ali_bear

Ah OK that sort of makes sense, thanks.